TRIPLE NET
LEASE AGREEMENT
THIS LEASE
AGREEMENT (“Lease”) executed and effective as of the
1 st
day of July, 2008 at Mentor, Ohio by
and between OSAIR, INC. , having an office at 8500 Station
Street, #113, Mentor, Ohio 44060 (hereinafter called
“Landlord”), and NORTHEAST OHIO NATURAL GAS
COMPANY , having an office at 8500 Station Street, #100,
Mentor, Ohio 44060 (hereinafter called
“Tenant”).
LEASE OF DEMISED
PREMISES
Section 1.01
Demised Premises . Landlord, for an in consideration of the
rent hereinafter reserved, and for the covenants and agreements
hereinafter set forth to be kept, observed and performed by Tenant,
has granted, demised and leased and by these presents does hereby
lease unto Tenant the following described premises, to-wit: 8500
Station Street, #100, Mentor, Ohio 44060 containing approximately
2,997 square feet (the “Demised Premises”).
Section 1.02
Term . Tenant shall have and hold the Demised Premises for a
term commencing as of July 1, 2008 (the “Commencement
Date”), and expiring on June 30, 2023.
Section 2.01
Use of Demised Premises . Tenant covenants and agrees that
the Demised Premises during the term hereof shall be occupied and
used in compliance with governmental permitted uses
only.
Section 2.02
Compliance . Tenant shall observe and comply with all
conditions and requirements imposed by all governmental authorities
having jurisdiction over the Demised Premises throughout the term
of this Lease.
Section 3.01
Amounts . Tenant covenants and agrees to pay to Landlord,
promptly when due, without notice or demand and without deduction
or setoff for any reason whatsoever, “Annual Rent” for
the Demised Premises during the term of this Lease in the amount of
Twenty-Four Thousand Dollars ($24,000) per year for each year of
the term of this Lease, payable in
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monthly
installments of Two Thousand Dollars ($2,000) each; provided,
however, that the Annual Rent shall be incurred each five
(5) years following the Commencement Date (the “Rental
Adjustment Dates”) by the percentage increase in the United
States Department Commerce Index: all items for Cleveland, Ohio
(“CPI”) which shall have occurred between the
Commencement Date and each Rental Adjustment Date.
Section 3.02
Payment of Rent . The Annual Rent shall be payable in equal
monthly installments, in advance, on the first day of each month of
each year during the term of this Lease. All installments of Annual
Rent which Tenant is required to pay under Section 3.01
hereof, as well as all other amounts payable by Tenant to Landlord
under the terms of this Lease, shall be paid at the office of
Landlord as set forth above, or at such other place as Landlord
shall from time to time designate by written notice to Tenant, in
lawful money of the United States of America.
Section 3.03
Net Annual Rent . Tenant agrees that the Annual Rent
provided for in Section 3.01 hereof shall be an absolutely net
return to Landlord throughout the term of this Lease, free of any
expense, charge or other deduction whatsoever, with respect to the
Demised Premises.
Section 4.01
Other Amounts as Additional Rental . In addition to the
Annual Rent provided for in Article Three, Tenant shall also
pay without notice of demand and without abatement, reduction or
setoff, as and toward “Additional Rental” hereunder,
its percentage share of all real estate taxes, insurance costs and
common area maintenance charges attributable to the real property
where the Demised Premises is located, along with all other sums of
money required to be paid by Tenant under the terms of this Lease.
In the event of any non-payment by Tenant of all or any part
thereof, when due, Landlord shall have all of the rights and
remedies provided for in this Lease, or by law, for the non-payment
of rent or for the breach of this Lease.
Section 4.02
Prime Interest Rate Definition . The term “Prime
Interest Rate” shall mean the lowest interest rate from time
to time charged by National City Bank (“NCB”) (or its
successor bank), Cleveland, Ohio, to its largest and most
creditworthy customers on unsecured loans and ninety (90) days
or less and announced by NCB as its “prime interest
rate”, and such Prime Interest Rate shall be changed as of
and effective on the same date that NCB (or its successor bank)
changes its announced prime interest rate as aforesaid.
Section 4.03
Interest . Any and all amounts which become due and payable
to Landlord under this Lease, whether deemed to be Annual Rentals,
Additional Rent or otherwise hereunder, shall bear interest at the
rate of three percent (3%) per annum in excess of the Prime
Interest Rate, as that term is hereinabove defined, from the date
or dates such amount shall become due and payable until the date or
dates of payment by Tenant.
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Section 4.04
Late Charges . If any monthly installment of Annual Rent is
not paid within ten (10) days of its due date, Tenant shall be
assessed a late charge equal to five percent (5%) of the overdue
monthly installment of Annual Rent.
Section 5.01
Subject only to those other sections of this Lease which
specifically limited Tenant’s obligations, Tenant agrees that
it will pay and discharge, or cause to be paid and discharged,
punctually as and when the same shall become due and payable
without penalty, all personal property taxes, privilege taxes,
excise taxes, business and occupation taxes, gross sales taxes, and
occupation license taxes, and all other governmental impositions
and charges of every kind and nature whatsoever, whether or not now
customary or within the contemplation of the parties hereto and
regardless of whether they unforeseen or foreseen, or similar or
dissimilar to any of he foregoing, (collectively “Tax or
Taxes”) which are due and payable for any period of time
during the term of this Lease and which:
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(a)
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Shall be levied, assessed or imposed
upon or against the Demised Premises or any portion thereof, or any
interest of Landlord or Tenant therein or under this
Lease;
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(b)
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Shall be or become liens upon or
against the Demised Premises or any portion thereof, or any such
interest or Landlord or Tenant therein, or under this
Lease;
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(c)
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Shall be levied, assessed or imposed
upon by virtue of any present or future law, statute, ordinance,
regulation or other requirement of any governmental authority
whatsoever, whether federal, state, county, city , municipal, or
otherwise, it being the intention of the parties hereto that,
insofar as the same may lawfully be done, Landlord shall be free
from all such expenses and all Taxes and charges of every kind and
nature whatsoever, and that this Lease shall yield to Landlord not
less than the Annual Rent reserved hereunder throughout the term of
this Lease.
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Nothing
contained in this Lease shall require Tenant to pay any franchise,
estate, inheritance, succession or transfer tax of Landlord, or any
income, excess profits or revenue tax or any other tax, assessment,
charge or levy upon the amounts payable by Tenant under this Lease;
provided, however, that it at any time during the term of this
Lease the methods of taxation prevailing at the commencement of the
term of this Leases hall be altered so that in lieu of any Tax
under this Section 5.01 there shall be levied, assessed and
imposed, a tax, assessment, levy, imposition or charge, wholly or
partially as a capital levy or otherwise, on the rents received
herefrom, or a license fee measured by the rent payable by Tenant
under this Lease, then in either of such events all such taxes,
assessments, levies, impositions or charges or the part thereof so
measured or based, shall be deemed to be included within the term
“Tax” for the purposes hereof, to the extent that such
Tax would be payable if the Demised Premises were the only property
of Landlord subject to the Tax, and Tenant shall pay and discharge
the same as herein provided in respect to the payment of
Taxes.
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Section 5.02
Taxes After Termination . Any Tax relating to a fiscal
period of the taxing authority, a party of which is within the term
of this Lease and a part of which is subsequent to the term of this
Lease, shall, whether or not such Tax shall be assessed, levied,
imposed or become a lien upon the Demised Premises or upon the
buildings and improvements comprising the Demised Premises, or
shall become payable during the term of this Lease, be apportioned
and adjusted and paid between Landlord and Tenant as of the sated
date of expiration of the term of this Lease, so that Landlord
shall pay the proportion of such Tax which that part of such fiscal
period included in the period of time after the expiration of the
term of this Lease bears to such fiscal period, and Tenant shall
pay the remainder thereof. With respect to any Tax for public
improvements or benefits which by law is payable, or at the option
of the taxpayer may be paid, in installments, Landlord shall pay
the installments thereof which become due payable subsequent to
this expiration of the terms of this Lease, and Tenant shall pay
all such installments which become due and payable at any time
during the term of this Lease, even if payment is postponed beyond
the end of the term of this Lease by Tenant.
Section 5.03
Percentage of Real Estate Taxes . Tenant shall pay to
Landlord within ten (10) days of billing, Tenant’s share
of the Real Estate Taxes and/or public improvement assessments due
on the real property based upon Tenant’s percentage of the
square footage occupied by Tenant within the building where the
Demised Premises is located. Tenant acknowledges that its
percentage share of all Real Estate Taxes and/or assessments is
.055%.
Section 5.04
Right to Contest Taxes . Tenant shall not have the right to
file a complaint or otherwise contest the amount of Taxes due as
determined by any governmental authority having jurisdiction
without the prior written consent of Landlord, which consent shall
not be unreasonably withheld or delayed.
Section 5.05
Non-Metered Utilities . Any utilities that are not
separately metered as to the Demised Premises shall be the sole
obligation of the Landlord, and shall be paid by the Land in
consideration of the Rentals paid by Tenant under this
Lease.
Section 6.01
Percentage of Insurance Costs . Tenant shall pay to Landlord
within ten (10) days of billing, Tenant’s share of all
of Landlord’s insurance costs for the Demised Premises
based upon Tenant’s percentage of the square footage occupied
by Tenant within the Demised Premises. Tenant acknowledges that its
percentage of share of all insurance costs is
.055%.
Section 6.02
Liability Insurance . At all times during the term of this
Lease at its own cost and expense, Tenant shall provide and keep in
force comprehensive general liability insurance policies, in broad
form, protecting Tenant, Landlord, and any mortgagees as additional
insureds, against any and all liability in the amount not less than
a combines single limited of One Million Dollars ($1,000,000). All
such polices shall cover the entire Demised Premises.
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Section 6.03
Other Insurance . Tenant may obtain any other additional
insurance which Tenant may desire at its own costs and expense,
including but not limited to business interruption insurance and
insurance coverage on its inventory and personal
property.
Section 6.04
Landlord and Mortgagees Named as Insureds . All such
insurance to be provided by Tenant under this Article Six
shall name Tenant and Landlord as insureds and, at the option of
Landlord, any other parties requested by Landlord as additional
Insured, all as their respective interests may appear.
Section 6.05
Mutual Waiver of Subrogation . Notwithstanding anything set
forth in this Lease, to the contrary, Landlord and Tenant do hereby
waive any and all right or recovery, claims, action or cause of
action against the other, their respective agents, officers and
employees for any loss or damage that may occur to the Demised
Premises or any addition or improvements thereto, by reason of
fire, the elements or any other cause which could be insured
against under the terms of a standard fire and extended coverage
insurance policy or policies, with vandalism, malicious mischief
and all-risk coverage and business interruption insurance or for
which Landlord or Tenant may be reimbursed as a result of insurance
coverage affecting any loss suffered by either party hereto,
regardless of cause or origin, including the negligence of Landlord
or Tenant or their respective agents, officers and employees. In
addition, all insurance policies carried by either party covering
the Demised Premises including, but not limited to, contents, fire
and casualty insurance, shall expressly waiver any right on the
part of the insurer against the other party for damage to or
destruction of the Demised Premises resulting from the acts,
omissions or negligence of the other party.
APPLICABLE LAWS AND
REGULATIONS
Section 7.01
Compliance with Laws . During the term of this Lease, Tenant
shall, at its own costs and expense, promptly observe and comply
with all present and future laws, ordinances, requirements, order,
directives, rules and regulations of the federal, state, county and
municipal governments and of all other governmental authorities
affecting the Demised Premises or appurtenances thereto or any part
thereof, whether the same are in force at the commencement of the
term of this Lease or may in the future be passed, enacted or
directed, and Tenant shall pay all costs, expenses, liabilities,
losses, damages, fines, penalties, claims and demands, that may in
any manner arise out of or be imposed because of the failure of
Tenant to comply with the covenants of this
Article Seven.
Section 7.02
Right of Contest . Subject to the rights of the lender under
any mortgage encumbering he Demised Premises, Tenant shall have the
right to contest by appropriate legal proceedings diligently
conducted in good faith, in the name of Tenant, or Landlord (if
legally required), or both (if legally required), without cost or
expense to Landlord, the validity or application of any law,
ordinance, rule, regulation or requirement of the nature referred
to in Section 7.01 hereof and, if by the terms of any such
law, ordinance, order, rule, regulation or requirement, compliance
therewith may legally be delayed pending the prosecution of any
such proceeding, Tenant may delay compliance therewith until the
final determination of such contest.
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Section 7.03
Compliance with Covenants . Tenant shall, at its sole cost
and expense, faithfully observe and comply with all covenants,
conditions and restrictions to which the Demised Premises are now
or hereafter subject.
Section 7.04
Tenant’s Indemnity Regarding Hazardous Use . Tenant
agrees to indemnify, defend and hold harmless Landlord for all
costs and expenses due to events relating to Tenant’s use,
shipment, storage, disposal or discharge of hazardous or toxic
materials or wastes, hazardous or toxic substances, solid wastes,
waste water, or process water in, on or about the Demised Premises
that may result in any requirements, liability or claims to remedy
and/or clean-up such wastes, toxins or substances, whether based
upon a statute, regulation, order of a governmental agency, or a
private claim. These requirements include, but are not limited to,
those claims or liabilities arising out of the Clean Air Act, the
Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act, the Toxic
Substances Control Act, the Safe Drinking Water Act, and the state
counterparts of such statutes. This indemnification applies to, but
is not limited to, claims or liability regarding air pollution,
water pollution, land pollution, groundwater pollution, solid and
hazardous waste management and toxic or hazardous substances
control. This indemnification will survive the termination of this
Lease.
REPAIRS, MAINTENANCE, AND
LANDLORD REPAIR REIMBURSEMENTS
Section 8.01
Obligations . Tenant has examined and inspected the Demised
Premises, is satisfied with the physical condition of same and
accepts same in its present “as is” physical condition.
Throughout the term of this Lease, Tenant covenants and agrees to
keep and maintain all portions of the Demised Premises which it
occupies in good order, condition and repair and to promptly make
all repairs or replacements becoming necessary during the term of
the Lease. Other than those obligations of the Tenant, Landlord
shall perform all other repairs and maintenance for the Building in
which the Demised Premises is located, including but not limited to
the exterior, structural, roof, parking lot, landscaping, and snow
removal; provided, however, that Landlord’s repair
maintenance costs shall be charged to the Tenant. Tenant shall be
charged its share based upon the percentage of the square footage
occupied by Tenant. Tenant acknowledges that its percentage share
of all Landlord reimbursements is .055%.
PUBLIC UTILITIES AND
SERVICES
Tenant agrees to
pay or cause to be paid all charges for separately metered and/or
separately billed by third party suppliers for all gas, water,
sewer, electricity, light, heat, power, steam, air-conditioning,
telephone or other communication service or other utility or
service used, rendered or supplied to, upon or in connection with
the Demised Premises or Tenant’s occupation and use thereof
throughout the term of this Lease, and to indemnity, defend and
save harmless Landlord from and against any liability, costs,
expenses, claims or damages on such
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account. Tenant
shall also, at its sole cost and expense, procure or cause to be
procured any and all necessary permits, licenses or other
authorizations required fro the lawful and proper use, occupation,
operation and management of the Demised Premises.
Tenant agrees that
it will not (a) demolish or undertake any structural
alterations of any of the buildings or other improvements erected
upon or otherwise comprising the Demised Premises, without the
prior written consent of Landlord or (b) make any other
alterations which would change the character of the buildings or
other improvements comprising the Demised Premises or which would
weaken, impair or otherwise in any way affect the structural
aspects of integrity of or lessen the value of the Demised Premises
and/or the buildings and other improvements comprising the Demised
Premises.
With respect to
any alterations permitted to be made by Tenant pursuant to this
Article Ten, Tenant shall (a) pay all costs, expenses and
charges thereof, (b) make the same in accordance with all
applicable laws and building codes in a good and workmanlike
manner, (c) cause the same to be performed by qualified
contractors who shall not create any labor or other disturbance at
the Demised Premises while performing same, (d) fully and
completely indemnify and hold harmless Landlord from and against
any mechanic’s liens or other liens or claims in connection
with the making thereof and (e) by reason of such alterations,
not thereby and (e) by reason of such alterations, not thereby
reduce the economic value of the Demised Premises.
All alterations,
improvements and additions to the Demised Premises permitted to be
made by Tenant hereunder, shall be made in accordance with all
applicable laws and plans and specifications previously submitted
to Landlord for Landlord’s approval, which approval shall not
be unreasonably withheld or delayed, and, except for removable
trade fixtures, shall at once when made or installed be deemed to
have attached to the freehold and to have become the property of
Landlord and shall remain for the benefit of Landlord at the end of
the term or other expiration of this Lease in as good order and
condition as they were when installed, reasonable wear and tear
excepted.
In the event in
the making of such alteration, improvements and additions as herein
provided, Tenant further agrees to indemnify and hold harmless
Landlord from and against all costs, expenses, liens, claims and
damages arising out of, or resulting from the undertaki
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